Zero COVID = Zero Dollars

Earning money is on lockdown. (Photo: The Conversation)

Aren’t you glad that we’re now somewhat back to normal once again as COVID cases go down and lockdown restrictions are lifted? China wishes it could say the same.

Financial center Shanghai reported a record 3,590 symptomatic cases and 19,923 asymptomatic cases for April 15. This is more than enough reason for the country to impose a new set of restrictions for its residences as it still attempts to achieve “zero COVID” status.

As anyone would’ve guessed, this is not making people happy. Not only are the residents fatigued from the intensified attempt of eliminating COVID-19 altogether, the lockdowns are bringing in massive economic implications too—and not the good kind. 

Nearly 400 million people across 45 cities are mandated to stay at home. According to Nomura Holdings, that’s 40%, or $7.2 trillion, of annual gross domestic product for the world's second-largest economy.

Majority of the fingers are pointing towards the war between Russia and Ukraine when global market struggles enter the conversation, but what people fail to recognize is just how much the lockdowns in China are also to blame.

The port of Shanghai, which also happens to be the largest in the world, lacks the manpower to keep up with delivery demands. Incoming cargo gets stuck in the place for an average of eight days before it can be shipped out. I guess that explains why my Shein package hasn’t arrived in weeks. 

The manufacturing industry is also seeing a downtrend as plants of major players like Sony and Apple have gone idle in Shanghai. Quanta, the world's biggest contract notebook manufacturer, has stopped production entirely.

China’s pandemic response could cost them $46 billion in lost economic output per month. While the attempt at prioritizing public health may seem noble, it’s looking like they’re losing dollars more than they’re saving lives. It makes you think if a zero COVID mindset is sustainable moving forward, too.